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Tom Hardel Market Update

Tuesday, May 19th, 2015 at 7:44am. 13 Views, 0 Comments.

>> Market Update 

QUOTE OF THE WEEK... "You have to expect things of yourself before you can do them."--Michael Jordan, former professional basketball player, team owner, and entrepreneur 

INFO THAT HITS US WHERE WE LIVE... The economic forecast forum at the National Association of Realtors (NAR) Legislative Meetings expects existing home sales to finish 2015 at their highest level since 2006. In fact, existing home sales in March jumped 6.1%, to 5.19 million units, its highest annual rate in 18 months, providing a nice start to the spring home buying season. But the NAR's chief economist cautioned that "housing supply needs to increase measurably to meet the pent-up demand for buying." Fortunately, he also expects housing starts at around 1.1

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Summit Mortgage Weekly Rates

Friday, May 15th, 2015 at 2:08pm. 16 Views, 0 Comments.

COMMENTARYAs predicted, rates remained steady and low this week with very few economic reports of consequence.  That’s not to say that the winds of change cannot spark up at a moment’s notice.  The prevailing thought amongst many economists is that the prospects for steady to perhaps fractionally lower mortgage interest rates are heavily dependent on soft economic news, developing weakness in the equity markets and a noticeable decline in crude prices. 

Looking ahead to the coming week, Tuesday's April housing starts and building permits together with Thursday's April existing home sales data will provide a look at the current condition of the housing sector.  Most economists expect these two reports to show the pace of housing sector activity

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Tom Hardel Market Update

Monday, May 11th, 2015 at 4:03pm. 38 Views, 0 Comments.

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QUOTE OF THE WEEK... "I never think of the future. It comes soon enough"--Albert Einstein, German-born theoretical physicist

INFO THAT HITS US WHERE WE LIVE... Never thinking of the future may be fine for a theoretical physicist, but in the housing market we need to think about where things are heading. Fannie Mae's National Housing Survey for April showed us some nice improvement in consumer sentiment. The share of those surveyed who said they'd prefer to buy a home if they moved grew to 63%. Fannie's chief economist further noted that "home price growth expectations strengthened to the strongest pace since last October." But the survey also revealed continued consumer caution about economic conditions, so Fannie expects that

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Summit Mortgage Weekly Rates

Friday, May 8th, 2015 at 6:35pm. 29 Views, 0 Comments.

COMMENTARYEvery once in a while, even a blind squirrel finds a nut. J  Last Friday, this column suggested that today’s Jobs report would be the main mover & shaker of rates for this week… it was.  I also penned that economists were predicting that the economy produced +/- 225,000 new jobs in April and that the national jobless rate would drop to 5.4%.  Both of those numbers were spot on from today’s Labor Department report.  For this reason, rates are virtually unchanged this week with the exception of the all-important 30 year fixed rate dropping from 4.125% to 4.0%.  There seems to be a reason for that drop as well due as March payroll numbers were revised down from the originally reported gain of 126,000 to 85,000 - the smallest improvement in three

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Tom Hardel Market Update

Monday, May 4th, 2015 at 1:42pm. 36 Views, 0 Comments.

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QUOTE OF THE WEEK... "Great minds must be ready not only to take opportunities, but to make them."--Charles Caleb Colton, English cleric, writer, and collector

INFO THAT HITS US WHERE WE LIVE... Opportunities continue to abound in the housing market. Last week, the Pending Home Sales index sailed up in March for the third month in a row, hitting its highest level since June 2013. This National Association of Realtors (NAR) measure of contract signings on existing homes was 1.1% ahead for the month and 11.1% higher than a year ago. It has now logged year-over-year gains seven months in a row. The NAR's chief economist sees "an increased number of traditional buyers" and concludes that "this year's activity is being driven by

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Summit Mortgage Weekly Rates

Saturday, May 2nd, 2015 at 7:48am. 50 Views, 0 Comments.

COMMENTARYFor the first part of the week, rates behaved as expected.  No news, rates stay steady but starting yesterday, things changed.  Interesting enough, they only seem to have changed for the 30 Fixed Rate Mortgage.  The 15 year, the ARMS, the Jumbos… all virtually the same.  So what happened?  In general, mortgage investors (think multi-billion $$ sovereign wealth funds) choose the type of mortgage-backed security they want to invest in and now that the Federal Reserve is no longer keeping rates artificially low, economic reports, world events and news in the mortgage world dictate the direction of rates.  Yesterday, the Labor Department reported that personal incomes slightly increased in March and Americans increased their spending

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Tom Hardel Market Update

Monday, April 27th, 2015 at 3:13pm. 47 Views, 0 Comments.

>> Market Update

QUOTE OF THE WEEK... "A good garden may have some weeds."--Thomas Fuller, English churchman and historian

INFO THAT HITS US WHERE WE LIVE... As the housing market garden sprouted this spring, we saw some wonderful growth, along with what seemed like a few bothersome weeds. The growth came in the form of Existing Home Sales, up a solid 6.1% in March, to a 5.19 million annual rate. This was their highest level since September 2013. Plus, sales are up 10.4% versus a year ago, with the median home price up 7.8%. Significantly, non-cash sales, where the buyer uses a mortgage loan, are up 25.3% from a year ago. In addition, the existing homes inventory shot up by 100,000 in March, the biggest increase for any March since 2006. But

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Summit Mortgage Weekly Rates

Friday, April 24th, 2015 at 4:01pm. 44 Views, 0 Comments.

COMMENTARYMortgage rates have dropped nationwide, but on a region-by-region basis, they're dropping by different amounts. The rate quote you get will not only depend on your credit score, down-payment and type of housing but also on the location of your property.  In today's market, the best place for low interest rates according to Freddie Mac’s weekly interest rate report is the Northeast Coast comprised of NY, NJ, PA, DE, MD and D.C as well as VA, WVA, ME, NH, VT, MA, RI and CT.  NE mortgage rates average 3.62% with an accompanying 0.6 discount points. This is only slightly better than rates in the West Region.  Western Region mortgage rates also average 3.62%, but require an average 0.7 accompanying discount points.

By contrast, the mortgage

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Tom Hardel Market Update

Tuesday, April 21st, 2015 at 2:45am. 49 Views, 0 Comments.

>> Market Update

QUOTE OF THE WEEK... "Nothing is really work unless you would rather be doing something else."--J. M. Barrie, Scottish author and dramatist

INFO THAT HITS US WHERE WE LIVE... Mr. Barrie, the creator of Peter Pan, might call today's housing market another Neverland, since month to month we never quite know what to expect. Following a weather-driven deep dive in February, Housing Starts gained 2.0% in March, reaching a 926,000 annual rate, with single-family starts up a solid 4.4%. In the Northeast, starts rebounded to the fastest monthly growth rate on record, and in the Midwest, they jumped 31.3%. In addition, the total number of homes under construction was up 0.6% for the month and up 16.5% over last year. Naysayers of course

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Summit Mortgage Weekly Rates

Saturday, April 18th, 2015 at 9:31am. 56 Views, 0 Comments.

COMMENTARYAgainst a backdrop of economic reports suggesting rates should be escalating (a stronger than expected March Retail Sales report and Producer Price Index figures), they seem to not only be steady but actually dropping just a bit.   I am not entirely sure why mortgage investors chose to shrug off these reports but there may be a wild card to be dealt with over the course of the next week or so -- and it has the potential to be a far more powerful determinant of mortgage interest rate movement than any of the scheduled economic reports.

A contingent of market watchers believe that Q1 corporate earnings reports will show a decline for two consecutive quarters -- the first time this condition has prevailed since the end of the Great Recession. 

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